13% RISE IN PRICES OF HOMES

Published: Wednesday, February 6, 2013 at 1:00 a.m.

Last Modified: Tuesday, February 5, 2013 at 8:10 p.m.

Home prices across Southwest Florida kept pace with national housing markets in December, as demand from buyers tightened the available inventory and pushed prices higher.

Facts

A DECEMBER BOOST:

But most of the increase isin lower-end houses

But an overabundance of distressed transactions -- foreclosures and short sales at reduced prices -- have continued to drag down the market, according to a reported released Tuesday by housing data provider CoreLogic Inc.

Home prices in the Sarasota-Bradenton-North Port metropolitan area jumped 13 percent in December compared with a year ago, and increased nearly 3 percent from November. Excluding distressed sales, year-over-year prices in Sarasota grew by 10 percent over the year.

"Of the properties that are decent, we're starting to see modest appreciation, and that's exactly what we want," said Debbie Roth, a Re/Max agent in Bradenton. "We don't want prices to skyrocket. We all saw what happens then."

The increases in December came as existing home sales in Sarasota capped off one of their busiest years on record, with 9,169 properties in the area changing hands -- a number only outperformed by the boom years of 2003, 2004 and 2005.

That demand has eaten away the area's housing stock to just 3.9 months' worth at current sales pace, a trend that has also generated higher prices. Markets are considered in equilibrium when six months' worth of inventory is available. Less signals a sellers' market.

The phenomenon was similar across the nation and in Florida.

U.S. home prices in December climbed 8 percent over the same time in 2011 -- the largest annual increase since May 2006 and the 10th consecutive bump up in home prices nationally.

Across the Sunshine State, prices were similarly up 9 percent, according to CoreLogic.

Many agents still believe those figures are misleading, however.

They contend that the majority of appreciation came from lower-end properties now in high demand by institutional investors, who are buying them as rentals. They expect prices to rise a more modest 3 percent in 2013.

"We have absolutely seen bottom, but when you drill down into the numbers, we're not seeing those material gains in the mid- to upper-level properties," said Robert Goldman, a Realtor, attorney and developer in Venice.

"The $350,000 home you or I would want to live in is barely appreciating," he said.

<p>Home prices across Southwest Florida kept pace with national housing markets in December, as demand from buyers tightened the available inventory and pushed prices higher.</p><p>But an overabundance of distressed transactions -- foreclosures and short sales at reduced prices -- have continued to drag down the market, according to a reported released Tuesday by housing data provider CoreLogic Inc.</p><p>Home prices in the Sarasota-Bradenton-North Port metropolitan area jumped 13 percent in December compared with a year ago, and increased nearly 3 percent from November. Excluding distressed sales, year-over-year prices in Sarasota grew by 10 percent over the year.</p><p>"Of the properties that are decent, we're starting to see modest appreciation, and that's exactly what we want," said Debbie Roth, a Re/Max agent in Bradenton. "We don't want prices to skyrocket. We all saw what happens then."</p><p>The increases in December came as existing home sales in Sarasota capped off one of their busiest years on record, with 9,169 properties in the area changing hands -- a number only outperformed by the boom years of 2003, 2004 and 2005.</p><p>That demand has eaten away the area's housing stock to just 3.9 months' worth at current sales pace, a trend that has also generated higher prices. Markets are considered in equilibrium when six months' worth of inventory is available. Less signals a sellers' market.</p><p>The phenomenon was similar across the nation and in Florida.</p><p>U.S. home prices in December climbed 8 percent over the same time in 2011 -- the largest annual increase since May 2006 and the 10th consecutive bump up in home prices nationally.</p><p>Across the Sunshine State, prices were similarly up 9 percent, according to CoreLogic.</p><p>Many agents still believe those figures are misleading, however.</p><p>They contend that the majority of appreciation came from lower-end properties now in high demand by institutional investors, who are buying them as rentals. They expect prices to rise a more modest 3 percent in 2013.</p><p>"We have absolutely seen bottom, but when you drill down into the numbers, we're not seeing those material gains in the mid- to upper-level properties," said Robert Goldman, a Realtor, attorney and developer in Venice.</p><p>"The $350,000 home you or I would want to live in is barely appreciating," he said.</p>